Indians love to buy gold during the holidays, especially during the holidays Diwali That starts in the last week of October, but this season, it hit strong dollar The rupee exchange rate and inflation have reduced their purchases of jewelry and precious metals.
The period between October and December is always an interesting time in Indiaespecially with regard to prices gold Silver and related question.
According to the “Oil Price” bulletin, there are several reasons why the last quarter of the year is important for the gold trade in India, but it appears that the current October saw a drop in demand for gold. and its prices have seen a decline from previous years.
Among the most important reasons that demand for gold is increasing is the annual holiday season, where the demand for gold and silver peaks.
According to the US Oil Price Bulletin, retail gold prices in Indian markets continued to decline in October as the price of one gram of 22-karat gold reached US $ 56.29 (or approximately Rs. 4,620). , and these prices are significantly below the levels of previous months.
Indians prefer to buy 24-karat gold, which is the most expensive. However, this type of gold also saw a drop in price to $ 61.41 (Rs 5,040).
Analysts believe rising inflation and a strong dollar could prevent Indian consumers from buying gold in the coming months. India is the second largest consumer of gold in the world after China. It is also the largest importer of silver. Heavy buying of gold and jewelry in India usually starts before Diwali festival, which for Hindus means “Festival of Lights”.
While the drop in the retail price of gold in Indian city jewelers is good news for consumers, there are doubts that consumers will be buying a lot of gold this year amid high inflation rates and pressures on life. The “Price of Oil” report believes that the lack of buyers is one of the main reasons for the drop in the price of gold this year.
In anticipation of rising domestic demand, and perhaps as an incentive for citizens, the Indian government lowered the basic import price of gold earlier this month.
Although the price change was small, it was significant for jewelry consumers, with the average price of 10 grams of gold dropping from $ 533 to $ 531.
Interestingly, global bullion prices are currently close to $ 1,700 an ounce, which represents a decrease of around 8% in dollar terms over the current year 2022.
Gold prices in global markets have rebounded for a few days from their lowest level in the past two months, with the dollar stopping temporarily. The spot price of gold also rose 0.4% to $ 1648.91 an ounce, after falling roughly 3% last week.
Gold futures rose 0.4% per 10 grams, while silver futures rose 1% per kilogram. Both gold and silver saw heavy selling in the first half of October. This came in the wake of negative US economic data and strong gains in the dollar index and US bond yields.
According to the “Price of Oil” bulletin, gold-supplying banks have reduced shipments of gold to India in favor of focusing on China, Turkey and other markets, many bank officials and vault operators said.
